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In this Dec. 7, 2017, file photo, China's President Xi Jinping waits for the start of a signing ceremony with Maldives' President Abdulla Yameen at the Great Hall of the People in Beijing.

Stocks rallied on Tuesday as Wall Street breathed a sigh of relief after China's president said he would work to "open" the country's economy, easing trade war fears, CNBC reported.

The Dow Jones industrial average closed 428.90 points higher at 24,408, with Boeing as the best-performing stock in the index. The S&P 500 gained 1.8 percent to close at 2,656.87, with energy leading nine of 11 sectors higher. The Nasdaq composite advanced 1.7 percent to 7,094.30.

Boeing and Caterpillar both rose more than 3 percent as concerns of a trade war were alleviated.

Trump Threatens China With Tariffs in Escalating Trade War

Administration officials stress this is only a proposal and so far, the tariff threats are only a war of words, but China has already made threats of their own. Chinese leaders say they are prepared to tax 50 billion dollars in American products, from soy beans to jumbo jets.